Insolvency and Bankruptcy Code, 2016 | Part IV, Chapter III

Section 199 IBC: Registration of Insolvency Professional Agencies

Section 199 of the Insolvency and Bankruptcy Code, 2016 (IBC) makes registration with the Insolvency and Bankruptcy Board of India (IBBI) a legal prerequisite for operating as an insolvency professional agency (IPA) and enrolling insolvency professionals as members. It forms part of Chapter III of Part IV of the Code.

Key rule: An organisation cannot lawfully operate as an IPA merely because it is incorporated or professionally affiliated. It must hold a valid certificate of registration issued by IBBI and act within its terms.

Section 199: Statutory text

199. No person to function as insolvency professional agency without valid certificate of registration.
Save as otherwise provided in this Code, no person shall carry on its business as insolvency professional agencies under this Code and enrol insolvency professionals as its members except under and in accordance with a certificate of registration issued in this behalf by the Board.

The provision imposes a statutory prohibition subject to any exception expressly provided in the Code. The registration requirement applies to an insolvency professional agency, not to every business offering general financial or legal advisory services.

What Section 199 means

What is an insolvency professional agency?

Under Section 3(20) of the Code, an insolvency professional agency means a person registered with the Board under Section 201 as an insolvency professional agency. An IPA is a regulated professional body that enrols and oversees insolvency professionals under the statutory framework.

What is a certificate of registration?

It is the authorisation issued by IBBI under the Code and the applicable IBBI (Insolvency Professional Agencies) Regulations, 2016. A certificate must remain valid and the agency must comply with its conditions, the Code, regulations and applicable directions.

What does the restriction cover?

Carrying on business as an IPA under the IBC.
Enrolling insolvency professionals as members in the capacity of a registered IPA.
Continuing those activities without a valid registration or contrary to the certificate's conditions.

Important distinction: Registration of an IPA is separate from registration of an individual insolvency professional. An individual seeking to act as an insolvency professional must satisfy the separate requirements applicable to insolvency professionals, including Section 206.

How an insolvency professional agency is registered

Section 201 governs applications for registration, while the IBBI (Insolvency Professional Agencies) Regulations, 2016 prescribe the detailed eligibility, application and certificate framework. The applicant must satisfy the applicable regulatory requirements; incorporation by itself does not confer IPA status.

Check eligibility: Review the legal form, objects, governance and other conditions specified in the current IPA regulations.
Apply to IBBI: Submit the prescribed application, particulars, supporting documents and applicable fee.
Regulatory review: IBBI examines compliance with statutory and regulatory requirements before granting registration.
Maintain compliance: Once registered, the IPA must follow the Code, its certificate, regulations and model bye-laws as applicable.

For current forms, amendments and procedural requirements, consult the IBBI legal framework repository rather than relying on an older printed regulation.

Provision	Purpose
Section 3(20)	Defines an insolvency professional agency by reference to registration under Section 201.
Section 196	Empowers IBBI to register and regulate IPAs, insolvency professionals and information utilities.
Section 200	Sets out principles guiding the registration of IPAs, including professional competence and ethical conduct.
Section 201	Deals with application for and grant of registration of an IPA.
Section 202	Deals with appeal against orders of the Board concerning IPA registration.
Section 204	Specifies functions of an IPA, including professional standards and monitoring of its members.
Section 206	Separately requires registration for individuals acting as insolvency professionals.

Two important sets of subordinate legislation are the IBBI (Insolvency Professional Agencies) Regulations, 2016 and the IBBI (Model Bye-Laws and Governing Board of Insolvency Professional Agencies) Regulations, 2016, as amended from time to time.

Frequently asked questions

Can an unregistered organisation enrol insolvency professionals as an IPA?

No. Section 199 requires a valid IBBI certificate for the regulated business of an IPA and enrolment of professionals as its members, except where the Code itself provides otherwise.

Does Section 199 require every insolvency professional to register as an IPA?

No. An IPA is an agency, while an insolvency professional is an individual professional. Their registration requirements are distinct.

Is registration permanent and unconditional?

No. The IPA must maintain valid registration and comply with applicable conditions and regulations. The Code empowers IBBI to take regulatory action where requirements are not met.

Where can the latest registration requirements be checked?

Use the official IBBI legal framework portal to check current regulations, amendments, notifications and guidance before applying.

Official legal sources

Explore the Insolvency and Bankruptcy Code, 2016 - section-wise guide.

Legal information only. Regulatory requirements may change through subsequent amendments or notifications. Verify the applicable version before taking action.